AT&T limits new customers to data-share plans only

NEW YORK (Reuters) - New AT&T Inc customers will soon only be able to buy Mobile Share plans, which involve higher data fees, but allow subscribers to share data allowances among multiple devices.

The No. 2 U.S. mobile operator said on Friday the elimination of older plans for new customers would take effect on Oct 25. It said it was streamlining its offerings because the data-share plans are its most popular.

AT&T added that existing customers could keep their current plans, even when they are upgrading to a new device, unlike its biggest rival Verizon Wireless. Both companies introduced shared-data service plans in 2012.

Investors say these plans could help operators such as AT&T and Verizon retain customers at a time when competition is ramping up in the U.S. wireless industry.

In particular, AT&T is facing increasingly aggressive competition from No. 4 U.S. operator T-Mobile US Inc, which compares itself directly to AT&T in its marketing.

The idea of is that customers subscribing to shared-data plans might be less inclined to switch to another carrier if their cellular service for several devices, including smartphones and tablet computers, is attached a single plan.

Carriers also see the plans as a way to encourage subscribers to add more devices and increase how much they spend on cellphone service.

(Reporting by Sinead Carew. Editing by Andre Grenon)

See all articles from Reuters
Loading...

Friend's Activity